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3 years ago

What document is a summary of the money a company brought in (revenue) and what it paid out (expenses)?

1 answer:

4 0

The income statement shows a detailed picture of the transactions of all revenue and expenses. The income summary account then summarizes these figures in order to produce the statement of retained earnings. Both the income statement and income summary show the revenue and expenses of a company.

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Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next

lora16 [44]

Answer:

$41.96

Explanation:

The first thing you need to do is to calculate terminal value at the end of time t = 3. Then the intrinsic value of the stock is sum of discounted cashflow from t =1 to t = 3 (cashflows at t = 3 includes dividend as well as terminal value).

Terminal value at t = 3 = Dividend in year 4/(Required rate of return - Dividend growth)

= 4.25 x (1 + 3%)/(12.5% - 3%)

= 46.08

Then value of the stock is calculated as below:

Stock intrinsic value = 3.8/(1 + 12.5%) + 4.1/(1 + 12.5%)^2 + (4.25 + 46.08)/(1 + 12.5%)^3

= 41.96

6 0

3 years ago

Free cash flow (FCF) and net income (NI) differ in the following ways:

alexandr402 [8]

Answer:

c. I, II, and III only

Explanation:

As we know that

Free cash flow = Earnings before Interest and Taxes × (1-Tax Rate) + Amortization and Depreciation expense - Change in Net Working Capital -Capital Expenditure

And, the Net income is determined after considering all cash and non cash expenses.

Therefore, I, II and III statements are considered

Hence, the option c is correct

6 0

3 years ago

assume that two firms are both following generally accepted accounting principles. both firms commenced operations two years ago

Igoryamba

The statement is False as when the balance sheets for the two companies are submitted to investors, they are not obligated to disclose the same amount of net fixed assets.

The Property, Plant, and Equipment classification is used to categorize fixed assets on a company's balance sheet. The cost of fixed assets is decreased on the balance sheet by depreciating them over the course of their useful lives in order to account for wear and tear. Both firms started off with $1 million worth of identical fixed assets when they first opened their doors two years ago, and neither one has sold or added any new ones. So, they are not supposed to report the same amount of fixed assets to investors since there is an absence of asset purchases.

Both current assets and fixed assets are listed on the balance sheet, with current assets intended for use immediately or for cash conversion and fixed assets for longer-term usage (more than one year).

Learn to know more about Accounting principles on

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8 0

1 year ago

Operational effectiveness refers to: Group of answer choices matching the benefits of a successful position while maintaining an

Harrizon [31]

Answer:

refers to performing the same tasks better than rivals perform them.

Explanation:

Operational effectiveness is refers to the situation in which the things excel. It helps in the progression of a work and brings change in the output of the company. When the inputs of the organization are used at the best possible way to bring the maximum outputs out of them, the company is said to be experiencing the operational efficiency. In this process the company excels and leaves the competitors behind.

5 0

3 years ago

Ayayai Corp. had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1, 2022 Purchase 102 $42 Mar. 14,

Dominik [7]

Answer:

Income after tax = $1666

Explanation:

LIFO (Last-In-First-Out) is a method of inventory valuation where the goods that are received last are used first. In other words, the latest stock is used first. This is common for bulky inventory, stacked one on top of another.

In order to obtain the after-tax income, both the gross profit and income before tax are required. To obtain gross profit, we require the cost of goods sold information. The inventory information is as follows:

Feb 1 : Purchases : 102 units x $42 = $4284

Mar 14 : Purchases : 175 units x $44 = $7700

May 1 : Purchases : 124 units x $46 = $5704

288 units were sold

The COGS would be:

124 x $46 = $5704

164 x $44 = $7216

Thus COGS : $5704 + $7216 = $12920

Gross profit : Sales - COGS

Sales : $59 x 288 = $16992

Gross Profit = $16992 - $12920 = $4072

Income before tax : Gross Profit - Expenses

Operating expenses : $1692

Income before tax = $4072 - $1692 = $2380

Income after tax : Income before tax - (tax rate x income before tax)

Tax rate : 30%

Income after tax = $2380 - ($2380 x 30%) = $1666

7 0

3 years ago